MeECL to raise Rs. 800 crores bond to deal outstanding loans

Guwahati, September 23:The government of Meghalaya has decided to extend support to  Meghalaya Energy Corporation (MeECL). The Corporations revenue gap stands at Rs 287 crores for the economic year of 2017-18. In order to restructure its finances the company has reportedly decided to raise bond of Rs 800 crores.

Chief Minister, Mukul Sangma, while addressing the press on Friday said that the corporation now requires Government assurance to raise bond and full support will be provided to the Corporation. Rs 1174 crores have been provided as total bank guarantee to the corporation and at present Rs.595.64 crores would be released, added the CM.

The Corporation’s proposal was approved by the State Cabinet with a clause that the bond be floated via a national competitive bidding. And outstanding loans with be dealt with the amount raised.

The Chief Minister while speaking to media persons said that the extended support was an exercise of economic reform to reduce the weight of the corporation’s interest repayment in the coming years by facilitating it to settle outstanding balance and reduce interest burden.

The Government expects to save a substantial amount of money annually through this initiative as the bond period is of thirty years.

The CM also reportedly revealed to media persons that the interest saving is expected to be around 24-25 crores.